The federal government’s deficit for fiscal year 2023 is set to double thanks largely to large amounts of government spending greenlit by the Biden administration, according to budget experts surveyed by The Washington Post.
The deficit will most likely reach $2 trillion, doubling from 2022’s $1 trillion deficit, because of President Joe Biden’s increased government spending on the Inflation Reduction Act, as well as higher Social Security payments due to elevated inflation, according to the Post. This deficit jump is one of the largest in a time outside of major crises such as wars and recessions, and signals a further increase in interest rates and more economic difficulties in the near future.
“A debt growing much faster than the economy will drive up interest rates, reduce economic investment, and over time make interest payments the largest federal expenditure — risking a federal debt crisis,” Brian Riedl, an economist at the Manhattan Institute, said, according to the Post.The recent deficit jump could potentially impact Biden’s hopes for re-election in 2024, as voters respond to economic difficulties. Biden has touted his goal to reduce the deficit in his “Bidenomics” plan, and criticized former President Trump for his response to the deficit during his time in office, according to a White House press release.Biden has repeatedly claimed that his policies reduced the federal deficit, but government spending only reduced after COVID-19 related spending measures expired following Biden’s entrance into office.
